BRIGHTSTAR SIGNS $4M DRILL-FOR-EQUITY AGREEMENT WITH TOPDRILL

Agreement to Drive Exploration at Sandstone Project

Brightstar Resources Limited (ASX:BTR) has announced the execution of a $4 million drill-for-equity agreement with Topdrill Pty Ltd. The arrangement will allow up to 50% of future drilling services invoiced by Topdrill to be paid in Brightstar ordinary shares. This builds upon an existing $1 million agreement between the two companies.

The new deal is a cornerstone for Brightstar’s multi-drill exploration program aimed at advancing its Sandstone Project in Western Australia, following the completion of recent transactions with Alto Metals Ltd and Gateway Mining Ltd. The arrangement is expected to further enhance Brightstar’s financial capacity to execute its exploration and development strategy.

At Brightstar’s election, any equity issued under the agreement will be voluntarily escrowed for six months and priced at the 20-day VWAP from the invoice date.

Brightstar’s Managing Director, Alex Rovira, commented:
We are pleased to expand materially upon the strong relationship with Topdrill and the existing drill-for-equity agreement, which aligns with our strategic ambition of partnering with tier 1 industry partners as we seek to genuinely build a WA-focused gold exploration, development and production business in a rising gold price environment.

The significant investment offers a cost-effective approach to enhance our aggressive exploration plans across Brightstar’s growing gold project portfolio and demonstrates Topdrill’s confidence in Brightstar’s team, Brightstar’s assets and development plan of organically growing gold production to become a material, multi-asset producer in Western Australia.

It is fantastic to see Topdrill’s commitment to not only Brightstar, but a number of emerging ASX-listed WA gold exploration companies with promising projects. This funding assistance, against the backdrop of continuing challenging equity capital markets, to effectively enable companies to drill more holes and discover more gold, is great to see and has a meaningful benefit to the junior exploration sector.

Read the full announcement.